The ES moved into all time highs which is above all structural support and resistance. Since there is no structure, traders focus on calculated support and resistance like floor pivots. I’ll often mention floor pivots in my posts because I use them in conjunction with structural support and resistance. Many traders and algos use them exclusively, so they often act as support and resistance. Today, the floor pivots defined the day. The R2 pivot at 1688.75 became the high of the day (the HOD was actually 1 tick short at 88.50) and the R1 pivot was resistance early on and then became support for the afternoon.
In addition to the Jobless Claims and Philly Fed numbers today, we had the wildcard of Bernanke testifying to the Senate Banking committee. The ES broke up hard from the R1=82 area towards the R2=88.75 area before Bernanke’s 10:30am EDT testimony was to begin. A short order flow opportunity unfolded at the R1 shortly after the Philly Fed blew away expectations, but didn’t pan out as the bulls broke the ES into blue sky shortly afterwards. Several sh0rt order flow opportunities unfolded at the R2, but I ignored them since Bernanke was talking. It was a coin flip which way Bernanke would move the market and given the morning’s bullishness, my guess was up. Ultimately that guess was wrong as the ES drifted back down to bounce off the R1 pivot and unfolding into today’s long example opportunity…
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